[ I N D E P T H | T A L E N T ]
“ It can be difficult to justify that one firm’ s algo rack is better than one you’ re currently using, so in many cases hiring people is about building relationships.”
MICHAEL HORAN, HEAD OF TRADING, PERSHING crisis saw the VP-level or middle tier ultimately eliminated as banks tried to cut costs, meaning that both the junior and senior tier were working with an increased workload. This still remains to a large degree today.
“ If that had not happened, then that mid-tier would be running various business segments and that’ s why we have such disparity between junior and senior staff leading certain banking, research, sales and trading operations.”
For those banks which are sometimes poaching entire teams from competitors, this change in how banking hierarchies operate has worked out as a boon, and not just internally. As Michael Horan, head of trading at Pershing, points out, banks continue to fight to distinguish their services and products from rivals in order to gain new business, but hiring is another strategic method used to win new clients.
“ For most of the large integrated houses trading liquid stocks, many are alike now in terms of the technology, with very similar algorithmic capabilities and smart order routers,” Horan says.“ So those houses are trying to get ahead of each other by hiring the right people to get new clients on board.
“ It can be difficult to justify that one firm’ s algo rack is better than one you’ re currently using, so in many cases hiring people is about building relationships and carrying out long-term strategies to build out the equities franchise.”
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